Being arrested in GTA IV is not the end of the game.  Like dieing, you will be transported to the nearest Police Station upon arrest, stripped of all your weapons and ammo as well as losing some cash to bribe the police.  With a one star wanted level police will approach you with guns drawn, and if they get too close Niko will put his hands up and be unable to move.  You can fight the arrest by repeatedly pressing the X button.  However, as soon as you break free from the arrest position the police will immediately begin firing on you and you will recieve a warrant level of 2.

If the police are able to open the door of your vehicle, you will automatically be arrested, with no chance of resisting.  Don’t let them open the door or it’s game over man, game over!

Later on in the game it is generally a better idea to end a chase by dieing rather than by being arrested, mainly because buying new guns and new ammo for them is way more expensive then simply paying the 8-10k death fee.

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